Glencairn Reports First Quarter 2007 Financial Results
Toronto, ON - May 10, 2007 - Glencairn Gold Corporation (TSX: GGG / AMEX: GLE) reports its financial results for the three months ended March 31, 2007 (currency figures in U.S. dollars). The consolidated financial statements along with management's discussion and analysis are available for viewing on the Glencairn website at www.glencairngold.com. The documents have been filed with SEDAR (www.sedar.com) and should be available on SEDAR no later than 24 hours from dissemination of this release.
The following is a summary of financial results for the first quarter 2007 (Q1 2007)* compared to results for the first quarter 2006 (Q1 2006):
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Revenue increased 76% to $20.3 million in Q1 2007 compared to revenue of $11.5 million in Q1 2006
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Gold sales increased 50% to 31,134 ounces in Q1 2007 compared to 20,746 ounces in Q1 2006
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Gold production increased 73% to 31,801 ounces in Q1 2007 compared to 18,382 ounces in Q1 2006
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Income from mining operations at Bellavista, Limon and Libertad totalled $782,000 in Q1 2007 compared to $2.0 million from Bellavista and Limon in Q1 2006
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Cash flow generated by operations totalled $5.3 million in Q1 2007 compared to $1.7 million in Q1 2006
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Cash totalled $13.0 million as at March 31, 2007 compared to $9.6 million as at December 31, 2006
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Loss in Q1 2007 was $1.2 million, or $0.00 per share (including a $565,000 loss from mining operations at the Libertad Mine) compared to a $1.8 million profit, or $0.01 per share in Q1 2006
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Cash operating costs per ounce of gold sold increased to $470 per ounce in Q1 2007 compared to $352 per ounce in Q1 2006
* Q1 2007 results include operating results from the Libertad Mine acquired in July 2006
"First quarter gold output established a good start to the year and puts the Company on track to reach our 2007 sales and production targets. We are also in a strong cash position which has grown to $13.0 million," said President and CEO Peter Tagliamonte. "Cash costs were high. However, we surpassed our expected overall quarterly production at lower than budgeted costs."
Operating results for Q1 2007 with comparable Q1 2006 results (shown in brackets) were as follows:
Limon Mine
Gold sold during Q1 2007 totalled 8,513 ounces (Q1/06: 7,846 ounces) at a cash operating cost per ounce sold of $453 (Q1/06: $438). The mine generated total revenue of $5.6 million (Q1/06: $4.4 million) on an average realized gold selling price of $654 per ounce (Q1/06: $555). Earnings from mining operations were $990,000 (Q1/06: $368,000).
Higher mill throughput contributed to an increase in the number of ounces sold in Q1 2007 compared with Q1 2006. The first quarter of 2007 also saw the Santa Pancha Deposit at the Limon Mine achieve commercial production.
Bellavista Mine
Gold sold during Q1 2007 totalled 10,475 ounces (Q1/06: 12,900 ounces) at a cash operating cost per ounce sold of $416 (Q1/06: $299). The mine generated total revenue of $6.8 million (Q1/06: $7.2 million) on an average realized gold selling price of $649 per ounce (Q1/06: $555). Earnings from mining operations were $357,000 (Q1/06: $1.6 million).
The decrease in ounces sold in the latest quarter was largely the result of the planned mining of lower grade material in the latter part of 2006 and lower than expected grinding mill throughput.
Libertad Mine
Gold sold during Q1 2007 totalled 12,146 ounces at a cash operating cost per ounce sold of $529. The mine generated total revenue of $7.9 million on an average realized gold selling price of $653 per ounce. The loss from mining operations was $565,000. There are no comparable figures for Q1 2006; Glencairn acquired the mine in July 2006.
In February 2007, the Company announced plans for the conversion of the Libertad Mine from a heap-leach operation to a conventional milling operation. A scoping study has been completed and the Company has entered into an option to acquire a milling facility to be relocated from Nevada to Libertad. The project is proceeding to the feasibility stage.
Glencairn anticipates aggregate 2007 gold output will range between 90,000 to 105,000 ounces at total cash costs per ounce sold of $385 to $425.
On March 31, 2007, the Company had cash of $13.0 million and working capital of $18.1 million compared to cash of $9.6 million and working capital of $13.6 million on December 31, 2006 On June 30, 2007, the Company will make the final payment of $1.5 million on its long term debt outstanding as at March 31, 2007.
Selected Quarterly Information
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Three months ended March 31 |
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2007 |
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2006 |
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Cash position (millions; as at quarter's end) |
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$13.0 |
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$7.1 |
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Gold sales (ounces) |
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31,134 |
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20,746 |
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Average spot gold price ($/ounce) |
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$650 |
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$554 |
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Average realized gold price ($/ounce) |
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$652 |
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$555 |
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Cash operating costs ($/ounce) |
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$470 |
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$352 |
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Total cash costs ($/ounce) |
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$498 |
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$371 |
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Gold produced (ounces) |
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31,801 |
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18,382 |
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(in thousands, except per share amounts) |
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Sales |
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$20,297 |
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$11,511 |
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Cost of sales |
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$14,639 |
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$7,295 |
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Net income (loss) for the period |
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($1,173) |
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$1,770 |
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Income (loss) per share - basic and diluted |
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($0.00) |
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$ 0.01 |
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About Glencairn Gold Corporation
Glencairn is a growing gold producer with mining and exploration activities focused in Central America. The Company operates the Bellavista Mine in Costa Rica and the Limon Mine in Nicaragua and plans to convert a third mine, the Libertad Mine in Nicaragua, to conventional milling and expand annual gold output. Mine operations were suspended in March 2007. It holds a 60% interest in the Cerro Quema advanced gold project in Panama and a 100% interest in the Mestiza gold property 70 kilometres from the Limon Mine. The Company focuses on efficient and productive mining practices to establish a firm base of quality operations. Glencairn is committed to growth by optimizing current operations and expanding
mineral reserves at existing mines.
Conference Call
A conference call will be held Tuesday, May 15 at 10 a.m. To participate, dial 416-695-9757 or, toll free in North America, 1-877-323-2090. The conference call will be archived and available for replay until May 22, 2007, by dialing 416-695-5275 or, toll free in North America, 1-888-509-0081. Use the passcode 642691.
For further information, please contact:
Cautionary Note Regarding Forward-Looking Statements: This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of gold, expectation that the Libertad mill feasibility study will be positive, estimated recoveries under the milling plan, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital for the mill project, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional
capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statement
s, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or required financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in the Company's annual information form for the year ended December 31, 2006 on file with the securities regulatory authorities in Canada and the Company's Form 40-F on fil
E WITH THE SECURITIES AND EXCHANGE COMMISSION IN WASHINGTON, D.C.   ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED OR INTENDED.  THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS.  ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.  THE COMPANY DOES NOT UNDERTAKE TO UPDATE ANY FORWARD-LOOKING STATEMENTS THAT ARE INCORPORATED BY REFERENCE HEREIN, EXCEPT IN ACCORDANCE WITH APPLICABLE SECURITIES.
